Resource development has power to change a nation: Harper

Mark Kennedy, Postmedia News04.14.2012

Colombian President Juan Manuel Santos Calderón greets Canadian Prime Minister Stephen Harper upon arrival at Castillo San Felipe de Barajas, the largest colonial fort in Colombia, for a Summit of the Americas leaders' dinner April 13, 2012 in Cartagena, Colombia.

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CARTAGENA, Colombia — Prime Minister Stephen Harper made a pitch for Canada’s mining industry Saturday as Western Hemisphere leaders gathered to discuss critical issues such as whether to decriminalize the illegal drug trade.

In a speech to senior business executives, Harper said a strong mining sector — assisted with a low-tax regime and environmental regulation without excessive delays — can help the Canadian economy and provide a lesson to the countries of Latin America.

“Resource development has vast power to change the way a nation lives,” he said.

The weekend Summit of the Americas kicked off Saturday with an embarrassing start after an incident reportedly involving Colombian prostitutes that led to a dozen of U.S. President Barack Obama’s Secret Service agents being relieved of duty.

The summit is being attended by leaders from more than 30 nations, including Canada.

The talks this year include issues such as trade expansion and reducing poverty in the Americas.

As well, many Latin American leaders argue the time has come that after decades of being barred from the summit, Cuba should be invited to the next gathering.

That runs counter to the firm positions of Canada and the United States, which insist Cuba should not be permitted to attend the next summit until the communist regime initiates democratic reforms.

Meanwhile, the escalating violence connected to drug cartels in Latin America has some nations insisting it’s time for a new approach — perhaps a decriminalized system in which governments regulate how the drugs are sold. They say this would remove the profits from the drug cartels.

To varying degrees, the leaders of Guatemala, Colombia, Mexico and Costa Rica have spoken out in favour of why approaches other than strict criminal crackdowns need to be explored.

But both Harper and Obama oppose the proposal, with a spokesman for the prime minister saying he will be a “strong voice” against decriminalization.

The differing views were on full display Saturday at a panel of some leaders who spoke to senior businessmen.

Colombian President Juan Manuel Santos, host of the summit, said some people in his country are calling for a new approach to the war on drugs.

"Sometimes we pedal and pedal and pedal, and we feel like we are on a stationary bike," he said.

“I think the time has come to simply analyze if what we are doing is the best we could be doing, or if we can find an alternative that would be more effective and less costly to society. This is a topic of extreme political sensitivity."

Santos added: "One extreme can be to put all users in prison. On the other extreme, legalization. In the middle there may be more practical policies, such as decriminalizing consumption but putting all the efforts into interdiction."

Obama said he doesn’t mind a debate, but made it clear his country has a strong position on the issue.

"I think it is entirely legitimate to have a conversation about whether the laws in place are doing more harm than good in certain places. I personally, and my administration’s position is, that legalization is not the answer."

Before the meeting, which is held every three years, could even start two separate security incidents occurred that marred the occasion.

On Friday, there were two bomb blasts in the seaside resort town of Cartagena, where thousands of security police have been hired to prevent terrorist attacks. No one was hurt.

Also Friday, Obama’s security detail — the renowned Secret Service — was embarrassed when it was announced that some of its agents travelling with the president were relieved of duty and replaced.

A spokesman for the agency said there had been “allegations of misconduct” made against the agents, who went to Colombia prior to Obama’s arrival for the summit.

There were media reports that the allegations involved prostitution, something that was not disputed by the Secret Service.

In the wake of these developments, Obama and Harper were intent on delivering firm messages about their commitment to trade and investment in Latin America.

On Saturday morning, Harper delivered a speech to a gathering of chief executive officers who had gathered for their own meeting just before the launch of the politicians’ summit.

Harper has been promoting Canada’s plans to break through into Latin America with more trade and investment. Already, in recent years, Canadian mining companies have established many operations in the region, and Harper devoted much of his speech to promoting the industry.

He said a strong mining sector — assisted with a low-tax regime and environmental regulation without excessive delays — can help the Canadian economy and provide a lesson to the countries of Latin America.

Harper said there are many ways a government can “maximize the value of this great industry for a country and its people.”

He painted a picture of how important resource industries are in Canada: Mining contributed $50 billion to the country’s GDP in 2011, he said, and provides “well paying” jobs for more than 300,000 Canadians.

“We are already the world’s No. 1 potash producer, second for uranium and a major global producer of most mineral and energy products.”

Mining accounts for more than one-fifth of Canada’s exports and has close to $200 billion in assets throughout the world, he said.

Sixty per cent of the world’s exploration and mining companies are listed on the Toronto Stock Exchange.

“In other words, in Canada, we know this industry well.

“Looking to the future, we see increased Canadian mining investment throughout the Americas — something that will be good for our mutual prosperity and is therefore a priority of our government. We are prepared to share our expertise in this area.”

Harper said it’s important for the industry to strive in a low-tax regime, such as the one provided in Canada by the Conservative government.

“By the risky nature of their enterprise, resource developers value certainty — legal, judicial and regulatory certainty — and they rightly fear unequal or arbitrary changes to the terms of doing business.”

Harper said the industry is now being “tested” by rising costs.

“Soaring resource prices might give the impression that mining companies are making easy profits,” he said.

“Less discussed is that the cost of inputs — notably skilled labour and fuel — is negatively impacting the economics of mining.”

As for regulatory controls, Harper said Canadians are “justly proud” of their mining industry “for its elevated sense of social responsibility.”

He noted that his government is reforming the regulatory review system to ensure projects aren’t held up by unnecessary delays.

“We cannot allow valid concerns about environmental protection to be used as an excuse to trap worthwhile projects in reviews without end,” he said.

“So, let me be clear: When it comes to evaluating development plans, one should not confuse the length of the process with the rigour of the science.”

In its recent budget, the government announced a new process to avoid duplication in regulatory reviews and speed up the process with clearly set time frames.

Critics say the changes will lead to poor environmental reviews, but Harper clearly disagrees.

“What matters is that the relevant facts are fully considered. That need not take years.”

mkennedy@postmedia.com

Twitter.com/Mark—Kennedy—

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